ICICI Bank has entered into an agreement dated 23 November 2022 in relation to an initial investment of Rs 50,000 in the seed equity capital of the proposed Joint Venture (JV) of Indian Oil Corporation (IOCL) and Chennai Petroleum Corporation (CPCL) (target entity).
The joint venture is aimed at setting up a petroleum refinery in Nagapattinam, Tamil Nadu.
The target entity will be implementing a 9 MMTPA refinery at Nagapattinam, Tamil Nadu in which IOCL and CPCL shall together hold 50% equity stake (25% each) and balance would be held by other JV partners.
While the joint entity for the project is yet to be incorporated, ICICI Bank will hold 10% of the equity shares in the project after its investment.
Refinery shall produce petroleum products including MS (Petrol), HSD (Diesel), LPG, etc. and petrochemical products such as polypropylene.
Since the shareholding is at 10%, no additional regulatory clearances will be required for the investment, the bank said in its exchange filing.